China's services growth hits 3-month high; yuan falls on Trump's aggressive tariffs
Seeking Alpha News (Thu, 03-Apr 1:38 AM)
The Caixin China General Services PMI increased to 51.9 in March 2025, up from 51.4 in the previous month, surpassing market forecasts of 51.6.
This growth was the strongest since December, driven by increased domestic demand, marketing efforts, and improved demand conditions.
The Caixin China General Composite PMI rose to 51.8 in March 2025 from 51.5 in February, marking its highest level since last November, marking the 17th consecutive month of growth in private sector activity, driven by the strongest expansion in manufacturing output in four months and a three-month peak in service sector growth.
Separately, the trade dispute between China and the U.S. intensified as Beijing announced plans for "resolute" countermeasures following the Trump administration's imposition of further tariffs, bringing the total to 54% on certain Chinese imports. China's Commerce Ministry called for the U.S. to reverse its unilateral tariffs and pursue dialogue, while simultaneously denouncing the measures as violations of international trade rules and acts of "unilateral bullying."
Traders now await Beijing’s response to Trump’s latest move.
The Shanghai Composite fell 0.3% to around 3,340 while the Shenzhen Component dropped 0.6% to 10,450 on Thursday, with mainland stocks snapping a two-day advance as US President Donald Trump imposed a 34% reciprocal tariff on China, intensifying the trade conflict between the world’s two largest economies, and the offshore yuan depreciated toward 7.32 per dollar on Thursday, touching a one-month low in the earlier session.
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Currency: (CNY:USD)
